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Federal Register / Vol. 86, No. 37 / Friday, February 26, 2021 / Rules and Regulations The Agency utilized the submitted comments, stakeholder feedback and experience gained from rounds one and two to develop this final rule, which will codify policies and procedures for administering the program. Changes that will be codified in the regulation include, but are not limited to, the following:
The requirement for two years of unqualified, comparative, audited financial statements has been changed to unqualified, comparative, audited financial statements for the previous fiscal year of the applicant from the date Respondent Six the application has been submitted.
Respondent wholeheartedly agrees The requirement that applicants that the FCC and RUS will need to work must submit certifications from the appropriate state or tribal broadband together to avoid any result that would office has been changed to a voluntary squander available funds, and that the request.
agencies should establish, prior to Under certain conditions, a initiating these new rounds of funding, subsidiary can use the unqualified, which areas should be prioritized and comparative, audited statements of their ensure that duplicative support is not parent to meet certain eligibility assigned to different providers for delivery of overlapping services. Such a requirements.
The first two rounds of funding had negative result would upset the restrictions associated with the Federal legitimate expectations of those Communication Commissions FCC
submitting bids for funding that they funding of the CAF II903 areas. The would be the only recipients of federal Agency has elected to remove these support directed to deploying new restrictions as the FCC buildout service. Only through coordination of requirements are implemented and efforts can the two agencies maximize the benefit of the federal funds allocated these areas become ineligible. The Agency will continue to work with the and optimize the delivery of new or FCC to maximize the funding that both improved broadband capability to rural the FCC and RUS make available to areas to close the digital divide.
rural America.
Agency response: The Agency Additional sections, including the continues to work with the FCC to scoring criteria, eligible service area identify areas where they are providing threshold, eligible award costs, and funds and where RUS is providing public notice response period were also funds.
adjusted since round one. These In addition to the comments received requirements will be determined on an under the round two FOA, the Agency collected stakeholder feedback utilizing annual basis and published in the Federal Register in order for the Agency various methods including, conducting phone and in-person interviews, hosting to remain responsive to stakeholder webinars, and hosting workshops across needs. Based on the prior feedback received, the Agency is issuing this the country. Through these venues, the rulemaking as a Final Rule with Agency regularly heard the following:
comment. The Agency specifically Financial requirements were requests public comment on the speed burdensome and could be streamlined used to determine eligibility.
to better serve rural communities.
Based on the prior feedback received, Specific required documents should the Agency is issuing this rulemaking as be made optional due to their minimal a Final Rule with comment. The Agency impact on the viability of the applying specifically requests public comment on entity and the proposed project.
The Agency should consider higher the speed used to determine eligibility.
Based on the speed requirements minimum speed requirements in order implementing the statutory to ensure systems do not become requirements of the program of the obsolete before the end of its composite Round 1 and Round 2 FOAs, the Agency economic life.
required a minimum of 10/1 Mbps The scoring criteria should remain service in order to qualify for eligibility.
flexible and continually be updated to For future rounds, the Agency would include the most up-to-date, accurate, take into account comments received and available data.
under this rulemaking to establish The public notice response period future speed requirements, which will should be extended to longer than 30
be announced in the Federal Register in days.

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that meet the great and increasing demand for capital expenditures for the extension and improvement of modern broadband systems. The taxpayer return on investment here is fair and justified so that small customers will get the benefit of it.
The RUS program should be reviewed periodically and continued as it serves the interest of Americans as a whole.
Agency response: Respondent fives response was more feedback versus requests for change. The Agency appreciates the positive feedback.

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the funding opportunity announcements.
Executive Order 12866, Regulatory Impact Analysis This rule has been determined to be significant and was reviewed by the Office of Management and Budget under Executive Order 12866. In accordance with Executive Order 12866, a Regulatory Impact Analysis was completed, outlining the costs and benefits of implementing this program in rural America. The complete analysis is available in Docket RUS20
Telecom0023 on Regulations.gov. The following is a summary discussion of the Analysis:
The final rule will codify statutory language from the 2018 Consolidated Appropriations Act that established the Rural eConnectivity Program and the 2018 Farm Bill with respect to public notice and reporting requirements, as well as general policies and procedures for the program. The result will be consistent, predictable program delivery that allows the Agency to deploy reliable, high-speed broadband into unserved areas and fuel long-term economic development and opportunities in rural America.
The Agency estimates up to 500
organizations may be interested in applying for the Rural eConnectivity Program and approximately 200 awards will be made each funding round. The Agency estimates the total cost to applicants to be $19,426 per applicant respondent and $6,837 per award recipient respondent. The administrative cost to the Federal Government to administer the program is estimated to be $5,495,802.
On October 21, 2017, United States Department of Agriculture USDA
Secretary Sonny Perdue released the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity. The report was a product of the Interagency Task Force on Agriculture and Rural Prosperity, which was formed to identify legislative, regulatory, and policy changes to promote agriculture, economic development, job growth, infrastructure improvements, technological innovation, energy security, and quality of life in rural America per Executive Order 13790 82
FR 20237. In partnership with local, state, and tribal leaders, and dozens of federal agencies, the report identified eConnectivity as one of five key catalysts to achieving prosperity in rural America.
In conclusion, the Agency notes that reliable, affordable high-speed internet is essential in todays global economy.

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